Expansion and Improvements in a Commercial Lease

More often than not, a commercial tenant will need to do some work to
a space before it's suitable for their business. The "Alterations and
Improvements" section of the lease will have all the details regarding
what alterations can be done, and who (the tenant or the landlord) will
pay for it.

Additionally, the lease should offer some options for the tenant to
lease more or less space in the future, depending on the needs of the
business.

This section of our site will guide you through some of these
important details in your commercial lease, and help you negotiate
favorable terms.

After you’ve moved in, you may want to improve or alter your commercial space. The key to a good lease clause covering mid-lease improvements is to separate minor improvements (those that do not need the landlord’s approval) from major work, which the landlord will rightly want to know about and approve ahead of time

Most commercial tenants want to customize their space. A “tenant improvement allowance” (known as a TIA or a TA) is a common arrangement for paying for these improvements. The Tenant Improvement Allowance (TIA or TA) is money set aside for the tenant to use to customize his space.

Many businesses start small but grow, needing additional space. When you negotiate your lease, plan now for that happy event—negotiate an expansion clause, and structure it so that it gives you both certainty as to the rent, and flexibility as to when and how you may exercise the right to expand.